In the Gordon Model, the Value of the Common Stock

question 174

Multiple Choice

In the Gordon model, the value of the common stock is the

• A) net value of all assets which are liquidated for their exact accounting value.
• B) actual amount each common stockholder would expect to receive if the firm's assets are sold, creditors and preferred stockholders are repaid, and any remaining money is divided among the common stockholders.
• C) present value of a non-growing dividend stream.
• D) present value of a constant, growing dividend stream.

---

Definitions:

Smaller-than-normal Brain Size

A condition where the physical size of the brain is below the average for the individual's age and sex.

Premature Delivery

The birth of a baby before the completion of 37 weeks of pregnancy, potentially leading to health challenges for the newborn.

Newborn

An infant from birth to a few weeks old, characterized by rapid physical and neurological development during the initial stages of life outside the womb.

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, which can be inherited from parents or result from a new mutation.